FACULTY OF ACCOUNTANCY
BACHELOR OF ACCOUNTANCY (HONS.)
MARCH - AUGUST 2025
SEMINAR IN MANAGEMENT ACCOUNTING
(MAF651)
SEMINAR 2: ENVIRONMENTAL COST AND BENEFIT
TITLE : THE ECONOMIC AND ENVIRONMENTAL BENEFITS OF SUSTAINABLE
AGRICULTURE
GROUP CLASS:
MAC2206D
PREPARED FOR:
MADAM SITI AZRINA ADANAN
PREPARED BY:
NAME STUDENT ID
NURSYAMIMI BINTI ZAILAN 2022612876
NURUL NAJWA BINTI ZULFTTERI 2022612814
SITI NUR ADILLAH BINTI FAIZUL ASARI 2022851488
NURUL SYAHIRAH ATIKAH BINTI MOHD SHAMSUDDIN 2022828004
SUBMISSION DATE : 11 JULY 2025
ACKNOWLEDGMENT
First and foremost, we give Allah, the Almighty, praise and appreciation for His bounties that
have enabled us to effectively fulfil the task that has been assigned.
We would like to sincerely thank Madam Siti Azrina binti Adanan, our respected lecturer in
Management Accounting (MAF651) for helping us with this work and for his invaluable advice
during the study process. His enthusiasm. sincerity. and determination have inspired us to finish
this project. He has shown us the best methods for handling the assignment and showcasing
our accomplishments. It was an enormous honour to be able to work and study under his
guidance. We are really grateful for everything he has done for us.
Next, We would also like to thank our team members for their support, commitment, empathy,
and camaraderie during this project. We truly value their collaboration and understanding during
our project-related discussion meetings. This assignment would not have been possible without
their participation. We want to sincerely thank our family for raising us and getting us ready for
the future with their love, prayers, care, and sacrifices. We sincerely appreciate their kindness
and patience, as well as their assistance in getting this case study completed. We sincerely
appreciate our friends' commitment to completing this project to the highest standard.
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TABLE OF CONTENT
CONTENT PAGES
1.0 INTRODUCTION 3
1.1 Background and Overview 3-4
1.2 Scope of Study 4
2.0 BENEFITS OF SUSTAINABLE AGRICULTURE 5
2.1 Improved Brand Image and Consumer Loyalty 5-6
2.2 Cost Savings and Resource Efficiency 6-7
2.3 Long-Term Economic Benefits 7-8
2.4 Positive Environmental Impact 8-9
3.0 RECOMMENDATIONS FOR OPTIMIZING THE BENEFITS OF 10
SUSTAINABLE AGRICULTURE
3.1 Strategic Communication and Government Collaboration 10
3.2 Implement Sustainable and Efficient Farming Practices 10-11
3.3 Invest in Capacity Building Activities and Scalable 11
Infrastructure
3.4 Advocate and Encourage Regenerative Soil and Water 11-12
Management Practices
4.0 CONCLUSION 13-14
5.0 REFERENCES 15
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1.0 INTRODUCTION
1.1 Background and Overview
Sustainable agriculture is defined as the extensive type of agriculture involving the integration of
the preservation of the environment and its further survival, economic feasibility, and social
responsibility. It is also concerned with ensuring that enough has been produced by it in terms of
food and possibly fiber with no harm to the ecosystems and ensuring that the future generations
can sustain themselves (Parven et al., 2024). The importance of sustainable agriculture has
also gained wider recognition in Malaysia and the entire Asian region because of the issues of
climate change, drying up of resources, and food security. It is now a proven fact that
sustainable agriculture is a collection or set of practices such as organic production and
integrated pest management, agroforestry and precision agriculture. These practices limit the
cases of environmental degradation and maximize outputs (Muhammad Naim et al., 2024).
The practices maintain soil conservation, effective use of water as well as biodiversity that forms
an important role in ensuring the provision of ecosystem services and agricultural robustness in
tackling environmental challenges.
The Malaysian agricultural sector is no exception to the scope of these issues as it also has
such problems as the lack of land, labour short-age and the susceptibility to the changes of the
climatic conditions. Sustainable agriculture offers the solutions that require the development of
the technologies and agricultural practices involving the use of few resources and the utilization
of less dependency on the application of chemicals and fossil fuel consumption. The
government segment is also involved in the elevation of implementing sustainable agricultural
standards, enhancing the quality of products and their effect on nature, which is propagated by
the Malaysian Good Agricultural Practices (MyGAP) certification program (Ali et al., 2022).
MyGAP does not only inform farmers on the need to adopt a production technique that is
environmentally healthy, but also ensures that they become more marketable because
consumers are guaranteed to be provided with a high quality of production.
Sustainable agriculture is able to offer this potential in terms of its economic attributes,
characterized by realizing the potential to increase farm income in terms of cost savings and the
opportunity to access high-value markets. According to Ali et al. (2022), found that
MyGAP-certified farms have reported higher profitability and a more effective integration of the
supply chains at domestic and international levels. The market is strongly affected by the
consumer demand for sustainably produced food, which is increasing in both the local and the
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global markets. In addition, sustainable agriculture leads to rural transformation, empowerment
of smallholder farmers and building communities' resilience through knowledge sharing and
capacity building (Muhammad Naim et al., 2024).
Sustainable agriculture is environmentally oriented in the sense that sustainable agriculture
guarantees equal access to available resources by people and hence it enhances quality rural
life. Community-based and participatory extension programs have been identified with potential
of fostering establishment of sustainable practices in Malaysia and achievement of social
inclusion and food sovereignty objectives. Sustainable agriculture plays an essential role in the
Malaysian strategy to attain the long-term gain of food security and sustainable rural
developments, because it simultaneously incorporates economic, environmental, and social
elements (Muhammad Naim et al., 2024; Ali et al., 2022).
1.2 Scope of Study
The given study will examine not only economic benefits caused by sustainable farming but also
environmental ones and see the ways these benefits can be incorporated into the concept of
Malaysian agricultural system. On the environmental aspect, the research paper will also point
out new emergencies on soil quality, water, biodiversity and greenhouse gases. With the
assistance of sustainable agricultural methods like organic farming, integrated pest
management, and agroforestry, it is possible to acquire these benefits and avoid adverse effects
of the conventional approach to agriculture (Muhammad Naim et al., 2024). These measures
will allow farmers to save the natural resources and the stability of the ecosystem in the end,
which is instrumental in the sustainable agricultural productivity in the background of climate
and environmental changes.
On the economic side, the study concentrates on how sustainable agriculture can save money,
which would otherwise be used on costly synthetic fertilizers and pesticides required, and
improved efficiency in the utilization and maximized farm profits. It also examines how systems
such as Malaysian Good Agricultural Practices (MyGAP) program can provide farmers access
to quality markets and help enhance brand values among consumers who are becoming more
interested in matters involving sustainability matters (Ali et al., 2022). Despite the importance of
these social aspects, which include the welfare of farmers and community development, this
study concentrates more on the environmental and economic impacts that make sustainable
agriculture successful. The results are focused on Malaysia, and therefore can apply to other
Southeast Asian nations that share the same agricultural and environmental issues.
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2.0 BENEFITS OF SUSTAINABLE AGRICULTURE
2.1 Improved Brand Image and Consumer Loyalty
One of the most strategic benefits of adopting environmental cost practices in agriculture is the
enhancement of brand image and the development of strong consumer loyalty. According to
Papadopoulos et al. (2024), the application of digital agricultural technologies such as
sustainability monitoring systems, smart irrigation, and eco-efficient equipment, not only
increases work productivity but also outwardly demonstrates a farm's adherence to
sustainability. These visible actions help to differentiate environmentally responsible producers
from their competitors and resonate strongly with consumers who increasingly place more value
on sustainability in their own consumer practices. The authors describe how farms that
continually incorporate green technology into practice build better reputations, which in turn
boost trust between customers and stakeholders.
This is supported by Chang, Han, and Li (2023), whose study on the agri-food sector collected
data of high positive correlation between consumer preference and environmental certification.
Consumers paid a marginal premium for food products bearing eco-labels and emphasizing
environmental sustainability, their study found. This form of consumer behaviour is fueled by
increased consumer awareness of environmental matters and wanting to buy brands that are
aligned with their values. This form of consumer behaviour is fueled by increased consumer
awareness of environmental matters and a want to support brands with the same values. This
involves green marking, green packaging, or fair supply chain management in the form of
transparent sustainability operations that have a direct effect on brand loyalty and result in
long-term market success.
In addition, Ijomah, Uchenna, and Opara (2024) posit that organizations which adopt and
share their sustainable processes with stakeholders build more emotional links with consumers.
The study points out that sustainability is not only about ennobling business processes but also
about gaining consumers' trust and loyalty in the long term. While farm producers are visibly
demonstrating their green commitment through certifications, public sustainability reporting, or
activity with local communities whom they would rather secure loyal customers favoring the
brand in the long run, even in times of economic recession.
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Mohammadi, Barzegar, and Nohekhan (2023) also add to the same view by explaining how
green marketing influences brand image. The findings indicate that customers respond
positively to green visible activities such as carbon-neutral operation, green packaging, and
packaging recycling. The greening marketing activities broaden the environmental costing
practice by situating them as consumer-relevant value propositions. In general, marketing
metrics and digital sustainability center environmental cost practices at the epicenter of brand
building in agriculture today. Such practices position farms to align presence in the market with
trust establishment with customers and customer relations formation over time.
2.2 Cost Savings and Resource Efficiency
In addition to branding benefits, environmental cost practices also offer substantial economic
advantages in the form of reduced operation costs and improved utilization of resources.
According to Papadopoulos et al. (2024), the use of digital farm technology such as precision
nutrient application machinery, intelligent irrigation systems, and autonomous crop monitoring,
for instance, assists farmers in preventing wastage and optimizing input usage. By the use of
water, fertilizers, and pesticides only as and where required, such technologies eschew overuse
and minimize cost of production. As quoted in their research, with such practices not only is
input and energy cost reduced but also equipment longevity increased and the quality of the
crops improved. This in the long run leads to healthier and stable financial performance for
farmers.
This technological effectiveness is further supported by the U.S. Department of Agriculture
(USDA, 2024), which highlights the economic advantages of no-till farming. No-till farming
avoids the need for large-scale plowing and therefore avoids fuel use, labor needs, and
equipment depreciation. It also improves the physical structure of the soil and water-holding
capacity, thereby eliminating the need for costly irrigation and chemical fertilizers. According to
real-world case profiles cited by the USDA, farmers who enjoyed using no-till methods have
consistently reported long-term cost savings and time savings, making it one of the most
rational instances of environmental cost practices at work.
The economic advantages of switching to sustainable farming are also highlighted by the
Institute for European Environmental Policy (IEEP, 2024). Their policy briefing states that there
are likely to be initial investments needed to invest in environmental cost measures, but the
payoff in the long run is the reduced use of synthetic agrochemicals, less irrigation needed, and
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improved soil health. In addition, IEEP describes how in institutions with robust support and
financing, farmers have more financial stability and reduced vulnerability to global price volatility
of inputs such as fuel and fertilizers. These benefits are particularly significant in an age of
increasing input prices and elevated climatic uncertainties.
In bringing these views together, it is clear that environmental cost practices are not only
ecologically wise but also economically wise. By combining technology-driven efficiency
(Papadopoulos et al., 2024) with rational field tactics (USDA, 2024) and policy incentives
(IEEP, 2024), agricultural producers can improve their cost structures while protecting the
environment. This evidence suggests that each farm is able to implement environmental cost management
practices in an effort to reduce costs, enhance risk coverage, and enhance productivity. This, in turn, forms a more
efficient, sustainable, and profitable system of agriculture that is environmentally and economically sustainable.
2.3 Long-Term Economic Benefits
One of the major long-term advantages of sustainable agriculture is that it actually is more
commercially viable in the longer term. Initial investments such as in organic soil treatments, low
emissions machinery or renewable irrigation systems because it can be expensive, but the
results are generally better productivity, greater soil health and biodiversity. These components
lead to decreasing dependence on costly chemical fertilizers, to insects or dry spell and
subsequently to stable yields. Still, with good policy and future planning, eco-sustainability is a
profitable economic model likely to resonate with agriculture in coming years.
In a study by Pimentel and Burgess (2022), a comparison was made between conventional
and organic farms in an effort to determine the economic and environmental impacts of
sustainable technologies. They discovered that farms that employed techniques, such as
natural pest control practices, composting and cover cropping, not only reduced their reliance
on synthetic pesticides and fertilizers, but also improved the soil’s ability to store moisture and
fertility in the ground. These chopping point improvements eventually resulted in higher crop
production, especially during rainy and cooler spells. It seems that the adoption of eco-efficient
strategies, although it will involve extra workloads at the starting point and a transitional period,
is capable of ensuring a steady growth in productivity and also helping to curb sustained input
costs these are the two factors that could promote long-term farming profitability. For instance,
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decreased dependence upon nitrogen-based fertilizers means a reduced outlay of cash and
diminished environmental taxes and penalties on chemical runoff.
As stated by Fitzgerald and Giri (2020), examined a marketplace advantage of farms
marketing their product in accordance with market trends for environment-friendly products.
With consumers and retailers demanding more and more transparency, ethically sourced food
and low-carbon food production, farms that meet this demand can have better access to
premium markets and command higher prices for their product. What’s more, these farms also
carry less risk from regulatory change, whether it’s pesticide bans or the looming imposition of
carbon taxes meaning a bit more stability in the long run. They stress that when sustainability is
embedded into business strategy "implying a long-lasting, multifaceted approach" it becomes a
means for businesses to differentiate themselves economically and grow, as well as to serve
environmental stewardship.
2.4 Positive Environmental Impact
Sustainable farming provides a variety of environmental benefits to some of the most common
environmental problems in farming today. Conventional farming systems and especially those
that rely on chemical fertilizers, monoculture, and intensive tillage have long been linked with
dirty water, land, and greenhouse gases, as well as loss of biodiversity. By contrast, yeanista
environmental farming practices, like cover cropping, no till farming, agroforestry, composting
and organic farming, minimize the negative impacts of agricultural production by working with
natural systems, not against them.
For instance, nutrient returns in the form of cover crops and compost increase the SOM of soil,
which translates into increased water-holding capacity and a carbon sequestration capacity in
soil leading to decreased erosion and greenhouse gas emissions (Pimentel & Burgess, 2022).
Soils are carbon sinks, sequestering carbon dioxide from the atmosphere in plant biomass and
soil organic matter. It makes a real difference when it comes to addressing climate change.
Furthermore, sustainable agriculture typically features water saving irrigation techniques like
drip irrigation for example, that decreases wastage of water and reduces the chances of
pollution of surrounding water bodies with fertilizers and pesticides. Agroforestry and crop
diversity have as well been shown to contribute to habitat quality, biodiversity and ecological
stability in farming systems.
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According to the Hannah and Garcia (2022), contend that farmers might have more to gain, in
terms of profitability and survival in the current regulated and sustainability-minded marketplace
where we live, by taking up ecologically responsible technologies in agricultural (many of which
also simultaneously save carbon dioxide or conserve water) than by shunning it. For instance,
employing low-carbon technologies such as solar-powered irrigation pumps or no-till farming
equipment saves fossil fuel use and restricts greenhouse gas emissions associated with
farming. Meanwhile, transitioning to more water-efficient systems, such as drip or sensor-based
irrigation, will also help save freshwater resources and make sure water is being used where
and when it's most needed. Such technologies are particularly precious in regions where climate
change has led to water stress or soil damage. It is also crucial for farmers to align themselves
with national environmental policies and international sustainability benchmarks (e.g., the
Sustainable Development Goals, Global GAP or EU Farm to Fork Strategy) by taking on specific
practices. Such standards frequently demand evidence of environmental performance,
something that low carbon and water saving technology can help to deliver.
Achieving these targets is not only crucial to avoid fines or other farm-level restrictions, but it
also offers access to global trading opportunities. Evidence of sustainability is meanwhile
becoming a new criterion in many export-oriented markets and retail chains. Thus the practice
adoption allows farmers to access green markets in which more environmentally concerned
consumers are willing to pay higher prices for products that are flagged as eco-friendly, or
`sustainably produced'. At the root of it, what Hannah and Garcia are flagging is a change:
sustainability is no longer just about trying to save the environment, it is an edge. Farms
adopting these measures will not only benefit the environment, they are building a rock-solid
platform of long-term economic sustainability by bringing them in line with regulations, gaining
reputational credit and gaining access to premium markets.
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3.0 RECOMMENDATIONS FOR OPTIMIZING THE BENEFITS OF SUSTAINABLE
AGRICULTURE
3.1 Strategic Communication and Government Collaboration
To establish brand reputation and long-term consumer loyalty, farm producers must take
responsibility for and openly discuss their sustainability measures in the area of open labeling,
good certification schemes like organic or fair trade, and genuine storytelling. These measures
reflect a genuine commitment to sustainability and social responsibility, making it less difficult for
green-conscious consumers to trust and purchase from the company. Support by the
government can also be enhanced by providing public awareness efforts, incentives for
sustainability, and country certification programs. Governments, for example, can fund
promoting certified sustainable products with the use of branding support, subsidies, or being
part of government-supported eco-labels. Public-private projects such as farm-to-table
assistance, sustainability festivals, or support for green storytelling also gain legitimacy and
visibility. The farmers and governments can help create stronger consumer confidence through
the exchange of recommendations for the environmental and cost benefits of such businesses
such as low carbon footprints, ethically suitable production sourcing, and water conservation
especially through electronic media and channels.These joint advocacies are not only improving
the reputation of corporates but also improving a long-term commitment and national pride in
the consumption of products produced locally that are eco-friendly to the environment.
3.2 Implement Sustainable and Efficient Farming Practices
To minimize costs and maximize resource use, use of sustainable agricultural activities is
recommended to include crop rotation, precision agriculture, integrated pest management
(IPM), and enhanced practices of water management such as drip irrigation, or sprinkler
irrigation by the agricultural producers. All these assists in reduction of excessive input such as
water, pesticides and chemical fertilisers hence saving production cost. Besides that, long-term
costs can also be decreased through switching to renewable sources of energy like
solar-powered pumps. To make such types of activities comfortable, the government and the
department of agriculture will be forced to give them technical hand, economical aid, and easy
access to green technology, especially to small and medium farmers. Under such types of
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policies, the farmers will have an opportunity to prevent wastage of foods, purchase the most
efficient growth of foodstuff, and gain long-term environmental and economic growth.
3.3 Invest in Capacity Building Activities and Scalable Infrastructure
In order to successfully reap the maximum long-term economic benefits of sustainable
agriculture, a person should not be limited by the short-term perspective so that they could
concentrate on long term strategic investment. This involves having the knowledge, tools, and
systems making it possible for farmers, particularly the small- and medium-scale farmers, to
achieve cost-reducing and profitable long-term transitions to sustainability. Governments,
non-governmental agencies, and agribusiness firms need to invest in capacity-building
activities, including on-farm training in regenerative agriculture, composting, rainwater
harvesting, agroforestry, and organic pest management. This helps farmers achieve greater
productivity at the expense of reduced reliance on expensive chemical inputs. At the same time,
it is crucial for the stakeholders to invest in the establishment of climate-resilient and scalable
infrastructure like, precision irrigation systems to minimize water wastage and maximize crop
yields, renewable energy options (e.g., solar-powered cold storage) and value chains that link
farmers to high-value and eco-friendly markets. Together, these investments yield reduced costs
of production, increased yield, premium market access, and improved climate resilience which is
all at the core of economic profitability and sustainability. By adopting a long-term, system-based
approach, sustainable agriculture can not only be ecologically sustainable but also a competitive
and viable model for future economies
3.4 Advocate and Encourage Regenerative Soil and Water Management Practices
Regenerative soil and water management should be encouraged and fostered in terms of
farming as well as landscapes to increase the positive environmental impacts of sustainable
agriculture. These actions include enticing the farmers to use practices like cover crop,
composting, crop rotation, and low or non-tillage systems, which complement each other in
building soil organic matter, soil physical structure, and water holding capacity, as well as carbon
capture, which results in mitigating the effects of climate change and reducing the impacts of
erosion. Besides these soil management measures, there are adequate water management
systems that are under consideration which consists of drip irrigation system, sensor-based
irrigation system, rain water harvesting, and the restoration of natural water catchments that are
some of the measures can be adopted to avoid water wastage being used and the
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contamination of the surrounding water bodies. To ensure the wide acceptability and success of
these measures, governments and agricultural agencies, alongside the conservation agencies,
must collaborate in offering technical training to farmers, financial incentives, as well as to offer
partnership and knowledge sharing opportunities. With these regenerative practices
incorporated into policies and assistance schemes extending to farmers, they will have the
fundamental opportunity to enhance ecological health, increase biodiversity, fortify resistance to
environmental pressures, pursue prolonged productivity, and reach prime markets where goods
valuation is based on environmental well-being.
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4.0 CONCLUSION
In conclusion, sustainable farming provides an effective and viable response to the dilemma
between environmental and economic degradation and sustainability, especially in the case of
Malaysia, and other comparable situations. This limits the wastage of natural resources,
enhances production and resilience through structural measures, through the incorporation of
environmentally friendly sustainable production techniques, such as organic production,
integrated pest management, agroforestry and precision farming. The other productivity of this
plan is the application of MyGAP certification programmes which enhances the quality of the
products, marketability of products, and investment of environmental custodians in taking it into
the partner index. This kind of synergy brings change to the rural world, building the support to
small holder farmers and gives some assistance on the embrace of sustainable development
and future food security.
Effects of sustainable agriculture are wide ranged and varied economically. These comprise
cost advantages that may be conferred by an efficient resource utilized, boosted brand name
and a high customer loyalty on grounds of growing fame of green products. Application of
technologies, which is precision application of nutrients, no till production and observation
systems using digital observations also contribute to minimization of input wastages and degree
of operating expense and maximization of crop quality and profitability of farm. These are the
activities of sustainable production in the long run as this produces a greater amount of
sustainable production, lesser amount or write off of expensive chemicals, and also, the risks
that may be caused by any such change of climate, and policies. Some of the reasons why the
farmers should practice the same and give positive feedback that would benefit the economy
and environment include access to high value markets, and the premium willingness of the
consumer who would pay extra on food that is produced in a way that is sustainable.
Environmentally, sustainable agriculture resolves some major problems that are related to
conventional agriculture, such as soil erosion, water pollution, loss of biodiversity, and the
emission of greenhouse gases. Soil and water management practices that enhance the health
of the soil, save water and result in increased carbon capture include cover cropping,
composting, reduced tillage practices and efficient irrigation. Such practices not only support the
mitigation against climate change, but also improves stability and resilience of the ecosystem. In
order to achieve all these benefits, synchronised action must include government support,
technical training, financial enhancement and knowledge sharing. Through the integration of
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these regenerative practices in policy and market systems, the long-overdue alliance between
farmers and sustainability initiatives will be able to continue producing crops, save the
environment, and have access to opportunities to encourage ecological integrity and thus
ensuring sustainable agriculture serves as both an economic and environmental solution.
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on farm income and marketability. Malaysian Journal of Sustainable Agriculture, 6(1),
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H. (2024). Navigating the environmental, economic and social impacts of sustainable
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Pimentel, D., & Burgess, M. (2022). Economic and environmental benefits of organic farming: A
global perspective. Agriculture, Ecosystems & Environment, 322, 107536. Retrieved
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Fitzgerald, G., & Giri, B. (2020). Sustainability and market-driven strategies in agriculture: The
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sustainable future: An overview of smart agriculture’s role in social, economic, and
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Agriculture: strategies for sustainable agricultural production, food security, and
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Shah, K. K., Modi, B., Pandey, H. P., Subedi, A., Aryal, G., Pandey, M., & Shrestha, J. (2021).
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